Page 721 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

706 The Complete Guide to Executive Compensation

pay grades See job grades
payment timing Date cash is received and/or restrictions on stock awards lapse.
pay mix The percentage relationship of the five compensation elements to their total.
pay multiple The difference between two jobs (e.g., CEO and lowest-paid job) expressed as a ratio.
pay philosophy The basis for the relative relationship of each of the five pay elements to each other,
to the defined marketplace, and to defined levels of performance.
pay range Difference in actual pay for same or comparable jobs; could also refer to the structure
allowable for a job (i.e., the allowable minimum and maximum).
PAYSOP See performance-accelerated stock option plan.
PE See price earnings ratio.
peer performance See peer ratings.
peer pressure The need to outdo others at similar organizational or societal levels.
peer ratings Company performance measured against a list of comparable companies.
penny stock Stock that usually sells for less than $1 a share.
pension An amount of money available to a person at time of retiring from the company. See defined-
benefit pension plan and defined-contribution pension plan.
pension equity plan Credits as a percentage of final pay earned each year and then totaled at time of
retirement.
pension plan A document that describes the amount of pension a person will receive under stated
circumstances.
pension rights Surplus funds are used by the takeover targeted company for improved benefits to
prevent use of excess funds if plan is terminated.
people intensive See people-intensive organization.
people-intensive organization Employees, not equipment, dominate the lower levels of the
organization. The opposite of a capital-intensive organization.
percentile One percent.
per diem rate Rate per day.
performance-accelerated restricted stock award plan (PARSAP) A stock award that has both an
employment and performance vesting requirement. The restrictions lapse when the required employ-
ment period is completed, but could be completed sooner if the preset performance target has been
met. Synonymous with time-accelerated restricted stock award plan, or TARSAP.
performance-accelerated stock option The employment period of vesting is accelerated if preset
performance target has been met.
performance-accelerated stock option plan (PAYSOP) A plan permitting performance-accelerated
stock options.
performance-accelerated vesting Vesting of a stock award or stock option that occurs sooner than
stated time vesting requirements if stated performance requirements are met. See PARSOP, PAYSOP,
and TARSOP.
performance appraisal Comparison of actual with expected performance.
performance condition equity plans A plan defined by FAS 123R as based on internal company
financial performance, either in relation to a target (absolute performance) or relative to the financial
performance of selected companies (relative performance).
performance-based compensation A requirement of Section 162(m) of the IRC permitting company
tax deductions in excess of $1 million per person.